"The social system of private property and limited government is the only system that tends to debarbarize all those who have the innate capacity to acquire personal culture."
~Ludwig von Mises

Jun 23, 2008

Kevin Duffy on rationalizations for the credit bubble

The rationalizations for this bubble are much different when compared to the Internet bubble. Back then, valuations didn't matter. This time, most of the speculation is in so-called value stocks that have had their earnings inflated by cheap credit, especially the financials.

The brokerages, in particular, have been bailed out continually by the government and seem to be playing the credit bubble aggressively.